More Americans Using Generics

The Department of Health and Human Services recently reported more Americas are switching to generic medications in an effort to cut their prescription drug costs.  Additionally, new data from the Centers of Medicare & Medicaid Services (CMS), suggests generic use is especially high among those enrolled in the new Medicare drug benefit. 

For the period through the third quarter of 2006, CMS reports generics now account for nearly 60 percent of the drugs dispensed to people in Medicare Prescription Drug Plans and Medicare Advantage plans.  Enrollees are taking advantage of generics as a way to delay reaching the coverage gap or to help avoid it altogether.

The National Association of Chain Drug Stores also reported generic dispensing has increased among private third party payers by nine percent over 2005.
According to the latest CMS report, “the use of generics among those enrolled in the Medicare drug benefit is 13 percent higher than the private third party numbers, indicating the Part D program is delivering savings well above the national average to beneficiaries and the government alike.”

CMS Acting Administrator Leslie V. Norwalk said the Medicare Part D program is already realizing significant savings vs. cost estimates a year ago.   “We will continue to promote generics where they are available as an important strategy to keep the new drug benefit affordable over the long term,” Norwalk emphasized.